Forex - USD/CAD falls to daily low as crude oil prices rise

Published 09/13/2010, 07:01 AM
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Investing.com – The Canadian dollar was up against its U.S. counterpart on Monday, advancing to a fresh daily high, as crude oil prices rose after a major pipeline leak disrupted supplies.  

USD/CAD hit 1.0296 during European morning trade, a daily low; the pair subsequently consolidated at 1.0299, shedding 0.68%.

The pair was likely to find support at 1.0247, the low of August 19, and resistance at 1.0392, the high of September 9.

Crude oil prices rose for a second day, gaining 0.83% to hit USD 77.22 a barrel, after a leak in a central oil pipeline in Illinois forced it to remain closed for a fourth day. 

Earlier in the day, pipeline operator Enbridge Energy Partners said it did not know when the pipeline, which transports approxiamtely 70% of Canadian crude oil exports to the U.S. was expected to restart.

Canada is a major crude oil exporter and as a result the currency often tracks changes in crude oil prices.

Meanwhile, the loonie was down against the euro, with EUR/CAD gaining 0.38% to hit 1.3196.

Later in the day, the U.S. was to release official data on its federal budget balance.

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